Hero MotoCorp to challenge Honda aggressively in Scooters, to have portfolio of half a dozen scooters

The maker of the Splendor and Passion motorcycles had earlier this year announced its intent to enter the premium motorcycles and scooter space. Ketan Thakkar | ETAuto | Updated: October 23, 2018, 10:42 IST

Mumbai: Hero MotoCorp is planning to have half a dozen scooters in its product portfolio in the next 8-12 months, as the nation’s largest two-wheeler maker seeks to expand its presence in a fast-growing segment where its presence is rather small.

The maker of the Splendor and Passion motorcycles had earlier this year announced its intent to enter the premium motorcycles and scooter space. It launched the Xtreme 200 motorcycle in July, and on Monday, introduced a new 125 cc scooter, Destini. With this, it has four scooter models in its portfolio.

In the April-September period, Hero MotoCorp’s scooter sales fell 12% to 3.43 lakh units.Hero MotoCorp believes that the scooter market is witnessing a shift towards products with higher engine capacity. The 125cc segment, which accounts for 20% of the scooter space, has been expanding at a rapid pace, witnessing growth of more than 75% since April this year.

Hero MotoCorp plans to next launch the Maestro Edge 125 before the end of the fiscal year and a 110 cc model next financial year. Apart from the Destini, its other models are the Pleasure, Meastro and Duet.

“We are confident that the Destini 125 will be a strong enabler for us in growing our presence in this (scooter) category,” said Sanjay Bhan, the company’s head of sales, customer care and parts business.

The new scooter is priced Rs 54,650-57,500 before road tax and insurance.

Hero MotoCorp has a share of more than 60% in India’s mass-market motorcycle segment. However, it has just a 10.42% share in the scooter space and is as good as inexistent in the 150cc-plus motorcycle market. The company had lost the No. 2 spot in scooters a few years ago to TVS Motor. Honda is the segment leader with an almost 60% market share.

In the April-September period, or the first half of the current fiscal year, Hero MotoCorp’s scooter sales fell 12% to 3.43 lakh units, underperforming the market that expanded 5%.

After several years of muted growth, Hero MotoCorp last fiscal year returned to double-digit growth in overall sales. So far this fiscal year, its two-wheeler sales have grown in line with the market at about 9-10%.

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